HD Hyundai Construction Equipment (267270) Q2 2025 earnings summary

Executive summary

• Sales increased 13% year-over-year in 2Q25, led by strong demand in emerging markets and a rebound in China.

• Operating profit declined 32% year-over-year due to one-time restructuring costs; excluding these, operating profit rose 5%.

• Net profit dropped 98% year-over-year, impacted by non-operating losses and foreign exchange effects.

Financial highlights

• 2Q25 sales reached KRW 967.7bn, up 13.4% year-over-year and 6.7% sequentially.

• Operating profit was KRW 40.0bn, down 31.6% year-over-year; operating margin fell to 4.1%.

• Net profit was KRW 0.6bn, a 98% year-over-year decrease.

• One-time expenses of KRW 21.3bn related to China business restructuring affected results.

Outlook and guidance

• North America and Europe show signs of demand recovery, with further growth expected in H2 2025.

• India and Brazil face temporary demand declines, but market position is being strengthened through new models and incentives.

• Emerging markets, especially Africa, Middle East, and Indonesia, are expected to drive continued sales growth.

• China’s moderate demand growth is supported by expansionary fiscal policy and increased exports.